Buy Here Pay Here Dealers Understand Credit Problems

Why Are People Struggling to Get Credit in Wichita?

The U.S. has seen a series of recessions and a certain amount of boom and bust over our lifetimes. No decade has been without a recession; the beginning of the nineties saw interest rates rise, the dot-com bubble burst in the early 2000s, and the Great Recession that officially lasted from 2007 to 2009 was caused by the subprime mortgage crisis.

It’s not as if the end of a recession means the end of tough times for the average person living in Wichita. The effects of a recession are felt for much longer, drastically altering how our lives play out. The collapse of many industries, restructuring of workforces, huge bank bailouts and stimulus packages — these all have lasting consequences that affect us every day.

While corporate earnings and the stock market have fully recovered, some people have found themselves out of a job for years, their skills degraded and their earnings lower than what they received a decade ago. Meanwhile, the average price of a home has risen. While there are more jobs, those jobs aren’t necessarily paying well, and people are finding that now more than ever they need to take on multiple jobs to make ends meet.

Why Is Credit Score Still an Issue?

At the end of the Great Recession, the richest families in America saw their house prices soar and they gained access to the cheapest credit they’ve ever seen. Those with the means and will bought up swathes of property for rental purposes — homes that were previously owned by people most affected by the recession.

Meanwhile, poorer families saw their homes being repossessed and their credit score plummet. They could no longer get credit to buy a house, forcing them into the rental market, again driving up prices. Rental prices went up, the rich got even richer, and the cycle continues.

Traditional Banks Don’t Cater for Those with Poor Credit

The average credit score has, in fact, hit an all-time high, so anyone that has less than great credit is becoming marginalized by the banking industry. Unwilling to take on any risk (and spooked by the housing crisis that was caused by excessive lending to subprime candidates), traditional lenders will refuse a loan to anyone who doesn’t have excellent credit. There is now a great divide between the haves and the have-nots, and if you’ve had a bankruptcy, job loss, foreclosure, or credit problem in the past you’ve been all but shut out until you can turn it around.

How Can I Get a Loan if I Have Had Credit Problems?

People without access to credit can struggle when times get tight. If you can’t get a loan because of your credit rating, you can consider loan options that don’t depend on your credit rating when deciding whether to loan funds.

If you own your own home, you can use its value as collateral for a loan. A secured loan like this tends to be over a long term, or you can open a credit line that’s secured against your home. If you fail to repay the loan, you’re at risk of losing it completely.

If you don’t own your home outright, then you can instead choose to purchase from establishments that will lend to you directly instead of them going through a third party.

If you’re looking for a used car, traditional used car dealerships use banks to fund loans, so even if they have a financing center they probably won’t be able to offer you a loan if you have bad credit. Instead, you want a Buy Here Pay Here car dealership.

Why Is a Buy Here Pay Here Different?

Buy Here Pay Here dealerships handle the financing of loans themselves so they’re able to decide whom to lend to. Some established Buy Here Pay Here dealerships like Auto Now in Wichita cater to those who have had credit problems in the past. This means that there’s no credit check involved and the borrower is judged on their current situation only.

If you need a used car and you have poor credit, as long as you have a job that shows you can pay back a car loan you can get a Buy Here Pay Here car at Auto Now. The minimum wage you’ll need to quality is $1,200 per month after taxes. If you earn more, you’ll be able to borrow more.

Apart from this important difference, Buy Here Pay Here dealerships are essentially the same as other used car dealerships and you can take your time choosing the vehicle that best suits your circumstances and needs. The prices of the vehicles are clearly displayed, and because you’re getting your financing from the same place you’re buying your car, you’ll instantly know how much you’re able to afford and therefore which vehicles are within your price range.

Auto Now in Wichita has a two-year/24,000-mile warranty on all vehicles sold, so you know you’re getting a great vehicle at a monthly repayment you can afford.

The Auto Now Team

Auto Now knows how it can be difficult to get a loan for a car if you’ve had credit problems in the past, and was set up specifically to help people like you easily and quickly get the vehicle you need. We’re proud of our team who has been working with us for decades in the Wichita area, and we believe we do everything we can to make the process as easy and fun as possible.

If you’re in the market for a car, browse the hundreds of models available at Auto Now and see what takes your fancy. You can fill in your details online so we can let you know how much you can borrow and therefore how much you can afford, or just give us a call or drop into one of our branches. We’re here to make getting a car into a joyful, fun, experience.